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CPC regulates state company leaders

0 Comment(s)Print E-mail Xinhua, March 26, 2012
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The Communist Party of China (CPC)'s disciplinary body issued rules Monday to regulate the conduct of state-owned enterprise leaders, strictly banning them from insider trading and violating accounting rules.

The regulations specify punishments for various types of misconduct, in order to "correctly deal with" violations of CPC discipline and "uphold integrity" in state-owned enterprises, according to a circular from the CPC Central Commission for Discipline Inspection.

State-enterprise leaders who embezzle state assets, ask for or receive bribes or illegally deal with state assets in order to seek profits for themselves and others, will be given a warning, removed from their posts, or even stripped of party membership, according to the severity of the misconduct, the rules say.

They will also be referred to prosecutors after the party imposes punishment.

State-enterprise leaders are banned from seeking profits for themselves or others by using the advantage of their enterprises.

The rules state that they are forbidden to seek profits for themselves, spouses, children or "special parties" by using "inside information, commercial secrets, enterprises' intellectual property rights and business channels" during the listing, restructuring and additional stock issuance of their companies. They will be stripped of their party membership for this behavior.

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